Albemarle Cuts Kemerton Jobs, Cops US$1.1b Charge

Rio boss looks past "extorters" at ERA

August 01, 2024

The Pre-Start

  • Cameco reported net earnings of C$36m for Q2. Uranium production lifted slightly at Cigar Lake & Macarthur River are on track to achieve 18mlbs for each operation (though maintenance shutdown coming in Q3). JV Inkai produced 3.5mlbs for H1, with 8.3mlbs the 2024 target (CCJ)… sulphuric acid deliveries still to blame, could bode interesting for Kazatomprom’s results tonight 

  • Albemarle is cutting jobs at Kemerton, putting Train 2 in C&M, halting Train 3 construction & recognising a c. US$1b charge (ALB.NYSE)

  • Capstone shared an updated Santo Domingo feasibility study, with an NPV8 of $1.7b, an IRR of 24%, for 19 years, churning out 68ktpa Cu (CSC)

  • SSR estimated Çöpler site remediation at ~$300m, with $55m spent this quarter. It has $358m cash & $850m liquidity to fund this (SSR)

  • Capricorn increased the ore reserve at Karlawinda by 15% to 1.43Moz (27% lift after depletion) (CMM)

  • Liontown produced first spodumene concentrate at Kathleen Valley, shipment planned for late Q3 CY2024 (LTR)

  • Ausgold delayed its Katanning DFS again (5th time now…) till H1 CY25 to allow input from the new executive team (AUC)

  • Poseidon entered into an agreement with Encore Minerals to develop the Windarra gold and nickel tailings (POS)

  • Leo Lithium copped a “first strike” on its Rem report resolution. A lot of the other resolutions didn’t cop much love either… (LLL)

  • Strike Energy secured a contract worth $49m with Clarke Energy for twenty 4.5MW Jenbacher gas reciprocating engines (STX)

High Grade It

  • BHP warned the Future Made in Australia policy risks being undercut by our high-cost base, unproductive workplace laws, an uncompetitive tax system, & proposed environmental laws (AFR)

  • Rio CEO Jakob Stausholm refused to be swept up in uranium hype & said assets like Jabiluka were a clear “no-go” zone (AFR)

“For me, it is a clear-cut thing, and I am happy that we have finally taken all the noise out, because that noise is only about minority shareholders of ERA trying to get a little bit of extortion here”

Rio Tinto CEO Jakob Stausholm

  • Glencore to announce coal spinoff decision next week, miner consulting with shareholders (MiningNews)

  • Nickel Industries boss Justin Werner said Indonesia trying to distance itself from China (AFR)

  • Albemarle switches off part of Kemerton lithium plant, zapping 300 jobs and up to $1.7b of asset value (West)

  • Rio Tinto won’t end dual listing after investor call to leave London, as investors Palliser Capital had called for (WSJ)

  • Mining veteran Tim Goyder said Liontown Resources defied the odds to start life as a lithium producer on time and on budget (AFR)

  • Rio wary of “hot” copper M&A market, positive on lithium, cooler on uranium (AFR, MiningNews)

  • Rio open to big copper buys but cautious of the overheated market (Reuters)

  • A Rio unit signed a US$277m agreement to buy locomotives to transport iron ore from Guinea’s Simandou deposit (Bloomberg)

  • China’s factory activity contracted for a third consecutive month in July, leaving the economy on a weak trajectory (AFR)

  • The liquidators of alleged nickel fraudster Ng Yu Zhi’s three companies are seeking to recover about US$637m from Ng & others (Bloomberg)

  • Origin giant Eraring coal power station in NSW produced at its highest level in 5 years, exposing the market’s heavy reliance on it (AFR)

Cantilever Ad

Wheelin’ n Dealin’

  • Silvercorp has completed its acquisition of Adventus, which was temporarily delayed over permitting concerns (SVM.TO)

  • Polymetals completed the acquisition on Endeavour Mine (POL)

  • Southern Cross Gold entered into a binding Scheme doc with Mawson Gold to consolidate ownership of the Sunday Creek asset (SXG)

  • Leonoil lodged its Bidders Statement in relation to its takeover for Sierra Rutile (SRX)

  • Brightstar is buying Gateway’s gold rights for Eastern Montague for $14m ($5m cash, $9m BTR shares) (BTR)

  • Decmil shareholders voted in favour of the Macmahon Scheme (MAH)

Rattlin’ the Tin

  • Black Cat completed Tranche 2 of its $36m placement (BC8)

  • Invictus Energy completed a US$10m placement (IVZ)

Word on the Decline

  • Word on the Decline South32 may have to replace the sub-sea foundation footings at GEMCO. Wonder what that does to the timeline on the resumption of production?

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In the Weeds

  • Jabiluka was Cancelled by Edict from Above (AFR op-ed) Written by Tony Grey, who led Pancontinental, discoverer of Jabiluka

  • Indonesia Has A China Problem In Its Nickel Industry (Forbes)

  • Spluttering China the big risk to Rio new growth era (AFR’s Chanticleer)

  • A visit to one of the world’s largest copper mines (Youtube)

  • Commodity flows at risk should Trump spark tit-for-tat trade war (Reuters op-ed)

  • Taiwan ponders its nuclear future as the island nation grapples with its energy options (The Australian)

  • For a non-mining view of the Jabiluka debate, and detail on the 1998 blockade, here’s a doco (YouTube)

  • The nuclear talk finally goes ahead after Holmes à Court criticism (AFR)

  • London loses its historic grip on global mining sector listings (FT)

  • Cameco have some serious torque to the spot uranium price

$20 increase in spot price gives $1 extra in realised price for 2024

Utilities have Cameco by the balls for the next 4 years

Were you forwarded this email from someone else?

Today’s Top Tweet

What product has the most beautiful UI you’ve ever seen?

Devil’s in the Detail

Today’s tip-off was sent in by a Money Miner and admittedly beyond our expertise to analyse properly.

It must be tough going for an explorer looking for a copper IOCG. It’s expensive, deep drilling. Yesterday’s announcement from Copper Search who are doing just that in South Australia had an unusual detail to it.

Previously the company said they were going to drill two holes to test both their priority targets. They did that… but are now drilling a 3rd hole in the program on the same drillpad, angled differently.

We asked a geo what the read-through is and it sounds like you can spin it both ways. Potentially core warranting immediate follow-up. Or a perceived ‘near-miss’ because drilling a geophysical inversion “is like trying to model someone’s aura”.

You learn something new about exploration every day.

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Disclaimer

All information in this newsletter is for education and entertainment purposes only and is of general nature only. The hosts of Money of Mine are not financial professionals. Money of Mine are not aware of your personal financial circumstances. Before making any investment decision, you should consult a licensed financial, legal or tax professional, along with considering any relevant Product Disclosure Statement. Money of Mine does not operate under an Australian financial services licence and relies on the exemption available under the Corporations Act 2001 (Cth) in respect of any information or advice given. Money of Mine strives to ensure the accuracy and currency of the information contained in this newsletter but we do not make any representation or warranty that it is accurate, reliable or up to date. Any views expressed by the hosts of Money of Mine are their opinion only and may contain forward looking statements that may not eventuate. Money of Mine will not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of information in this newsletter.

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